Will someone please explain to me how the UBS Puerto Rico sponsored closed-end bond funds (UBS Funds) managed to increase their Net Asset Values (NAVs) after most, if not all, of the Puerto Rico government and agency issued bonds held in the UBS Funds were downgraded to “junk” status? I am questioning whether the NAVs that UBS Puerto Rico reported for the week ending February 19, 2014 in the prior two weeks truly represent the actual NAVs of the UBS Funds. First, how did they manage to fairly price the bonds with the small number and size of Puerto Rico bond transactions in the marketplace? Most of the Puerto Rico bonds in the UBS funds are very thinly traded. Further, the prices of many of the Puerto Rico bond transactions have been all over the place because the trading is very volatile. Did UBS Puerto Rico get these prices from a matrix? Or has UBS Puerto Rico manipulated the Puerto Rico bond market through transactions with their closed-end bond funds? With the increasing number of arbitration claims relating to the UBS Puerto Rico closed-end bond funds, I am wondering whether UBS Puerto Rico is engaging in a trading strategy to pump up the NAVs and prices of the UBS Funds to reduce the Claimants’ damages in those arbitration proceedings. Whatever the reason, there is a slight upward trend in the NAVs of most of the UBS Funds as set forth below:
Tax-Free Puerto Rico Fund, Inc
Tax-Free Puerto Rico Fund II, Inc
Tax-Free Puerto Rico Target Maturity Fund, Inc
The SEC previously accused UBS Puerto Rico of pricing irregularities and the word on a street is that the SEC has opened another investigation. Hopefully, the SEC’s investigators are monitoring the NAVs and pricing of the UBS Funds to deter UBS Puerto Rico from tampering with the valuations and prices.
Have you suffered losses in Puerto Rico bonds or closed-end bond fund investments? If so, call Attorney Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. We have associated with an attorney in San Juan, Puerto Rico, namely Lcdo. Julio Cayere Quidgley, who will meet with you and discuss your case at no charge. Mr. Pearce and Mr. Cayere are accepting clients with valid claims against UBS Puerto Rico, Santander Securities, Popular Securities, Merrill Lynch and Oriental for misrepresentations, overconcentration and/or unsuitable recommendations of its bond funds.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Robert Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. Attorney Adam Kara-Lopez habla español. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.